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Indus Towers Buyback: Bharti Airtel Strengthens Control with Over 50% Stake

Indus Towers buyback will see Bharti Airtel raise its stake to over 50%, making the telecom infrastructure firm a subsidiary. Airtel’s stock rose 0.61%, while Indus Towers increased by 1.08%.
Indus Towers Buyback: Bharti Airtel Strengthens Control with Over 50% Stake

On August 28, 2024, it was revealed that Bharti Airtel is set to make Indus Towers its subsidiary due to a recent share buyback exercise. According to a regulatory filing, Airtel plans to acquire 5.67 crore equity shares of Indus Towers. This purchase will boost Airtel’s stake in the telecom infrastructure company to over 50%.

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As of the end of June 2024, Airtel, a promoter of Indus Towers, held a 48.95% share. The buyback allows Airtel to increase its ownership by about 2%. The buyback involves up to 56,774,193 shares, representing roughly 2.1% of Indus Towers’ total paid-up share capital.

Following this Indus Tower buyback, Airtel’s shareholding in Indus Towers will exceed 50%, reaching approximately 50.005%. This change will make Indus Towers a subsidiary of Bharti Airtel according to the Companies Act, 2013. The final transition is pending the completion of the buyback activities.

The news is expected to influence Airtel’s stock performance. On August 27, Airtel’s share closed 0.61% higher at ₹1,522.75 on the National Stock Exchange (NSE). 

Indus Towers, which is also publicly traded, saw its stock increase by 1.08%, settling at ₹437.95 per share on the NSE.

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